Monday, July 11, 2016

Italian prosecutor investigates Deutsche financial institution over 2011 bond sale



BARI, Italy An Italian prosecutor is investigating Deutsche bank (DBKGn.DE) over its sale of seven billion euros ($8 billion) of Italian government bonds 5 years in the past, an investigative source instructed Reuters.

A prosecutor in Trani, a town in southern Italy, is investigating due to the fact Deutsche bank allegedly informed customers in a studies word in early 2011 that Italy's public debt was no motive for situation, and then offered almost ninety percentage of its very own keeping of the u . s .'s bonds, the source stated on Friday.

"We do now not agree with there may be a case to reply right here and are assured that we acted appropriately," a spokesman for Deutsche financial institution stated in an electronic mail to Reuters, adding the German lender become cooperating with Italian government.

Deutsche bank offered the bonds within the first half of 2011 as Italy slid closer to a debt disaster that sooner or later delivered down the government of former top Minister Silvio Berlusconi.

Italy's economy ministry said in August 2011 that Deutsche financial institution had explained the sale via pronouncing it had to stability out its publicity to Italian debt after taking on extra when it bought out Deutsche Postbank in 2010.
five former Deutsche financial institution managers in addition to the bank itself are beneath investigation in Trani, the supply delivered.

The same prosecutor has, in current years, also opened investigations into rankings agencies Moody's, trendy & negative's and Fitch, announcing their reviews on Italy and its banks all through the crisis had been mismanaged and provoked sharp losses at the Milan stock market.

The case towards Moody's become dropped earlier than a tribulation started out in Trani final year. The case against Fitch Italia and its country head changed into moved to Milan, in which a judge threw it out on Friday.
but David Riley, Fitch's former head of sovereign rankings, stays on trial in Trani, in conjunction with five S&P officials. The ratings organizations have denied wrongdoing.

The U.S. ambassador to Italy, John Phillips, cited the scores company probe in a speech in Milan ultimate month in which he stated Italy's justice machine changed into deterring traders.
in the united states of america it was "pretty unlikely that one of these case could be introduced outside the essential economic facilities, wherein prosecutors have both jurisdiction and understanding in securities fraud prosecutions," Phillips said.

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